Gujarat-based sanitary products making company Cera Sanitaryware Ltd has agreed to float a joint venture in partnership with Anjani Tiles Ltd for setting up a ceramic vitrified tiles facility at Nellore in Andhra Pradesh, according to a stock market disclosure.

The project, which will start production of tiles in 2016, will require an initial investment of Rs 68 crore (approximately $10.5 million) to be funded with a mix of debt and equity – Rs 36 crore (about $5.5 million) as equity and remaining through long-term debt.

Cera will pick 51 per cent stake in the proposed JV which is estimated to cost it around Rs 18.36 crore ($2.8 million). Anjani will infuse Rs 17.64 crore ($2.7 million) for remaining 49 per cent stake.

The project will have an initial capacity of 10,000 square meters per day of tile production with a possibility for expansion.

The firm also trades in bathroom accessories. Besides, it generates non-conventional wind power.

For the September quarter 2015, Cera Sanitaryware clocked a 13 per cent growth in its sales to Rs 225 crore and a 14 per cent increase in its net profit at Rs 18 crore.

Early this year, the company raised around Rs 70.6 crore ($11.5 million) from Lighthouse Funds' second private equity fund through a preferential allotment. It also counts Westbridge Capital and Nalanda Capital as its shareholders.